Cabinet approves plan to list 6 state-owned firms, dilute stake in one

The government has set a disinvestment target of Rs 800 billion this financial year, but in the first half it managed to mop up a little over 10%

The union cabinet has approved a plan to list six government-owned companies and dilute stake in Kudremukh Iron Ore Company Ltd (KIOCL) through a share sale, the government said on Friday.

The cabinet gave approval to list Telecommunication Consultants Ltd, RailTel Corp India Ltd, National Seed Corp India Ltd, Tehri Hydro Development Corp Ltd, Water & Power Consultancy Services Ltd and FCI Aravali Gypsum and Minerals Ltd, said Law Minister Ravi Shankar Prasad in Delhi.

Prasad did not elaborate on the timing of the proposed share sales. The government said it would reduce its stake in KIOCL through a follow-up offering.

"Listing will help PSUs to unclock potential and value," Prasad told reporters. 

The government has set a disinvestment target of Rs 800 billion this fiscal year, but in the first half it managed to mop up a little over 10 per cent.